fada: Automobile dealers anticipate high levels of transparency and ethical business practises from producers: FADA
“While we welcome the efforts shown by OEMs in improving key issues related to sales, delivery and after-sales, dealers continue to expect higher transparency in matters related to Dealership viability and a fair and balanced business policy,” FADA President, Manish Raj Singhania said in a statement. The study discovered that sharing training expenses with OEMs and dealers’ participation in policy making are both areas of concern in the four-wheeler mass market sector.
Dealer satisfaction with product dependability and customer selection is strong. The ranking of the segment’s most happy dealers was headed by Kia India, with Hyundai Motor India and MG Motor India coming in second and third, respectively. Maruti Suzuki India, the nation’s largest automaker, came in ninth. FADA reported that dealers in the high-end four-wheeler segment expressed worries about the speed of components supply and turnaround time as well as the ability of OEMs to fulfil orders for cars in accordance with standards and specifications.
The segment leader was Volvo Cars India, followed by Mercedes Benz India. The study indicated that the buyback/deadstock policy of vehicle manufacturers and sales margins were issues of concern for two-wheelers. These need to be addressed as they directly affect dealer viability. The study found that Honda Motorcycle & Scooter dealers, followed by Hero Motocorp and Royal Enfield, were the most satisfied. FADA stated that in the commercial vehicle category, dealers were concerned about assuring viability and dealing with deadstock and inventory buyback by OEMs.
According to the FADA report, dealers of Volvo Eicher Commercial Vehicles were the most satisfied in the category, followed by Tata Motors and Ashok Leyland. Dealers are demonstrating a shift in expectations as post-COVID business normalisation takes hold, with variables connected to sales and delivery and after-sales, particularly warranty difficulties, gaining higher importance than in 2021, according to Rajeev Lochan, founder and CEO of PremonAsia. “While the improvements made by OEMs in these factors are encouraging, the expectations on dealer’s business viability and the role of regional sales and service teams in representing the dealer’s voice back to the head office will be vital in the foreseeable future,” he added.
